Austan Goolsbee's Perspective on Cryptocurrency

Federal Reserve Bank of Chicago President Austan Goolsbee recently shared his views on cryptocurrency, focusing on its limited macroeconomic impact and speculative nature.

Goolsbee acknowledged the recent rise of crypto-based assets, but emphasized that they have not significantly affected the broader economy like traditional financial system assets such as stocks. He pointed out that while investors may experience a wealth effect from rising crypto prices, the lack of a clear real-world use for many crypto assets limits their direct impact on the economy.

Additionally, Goolsbee warned against linking highly volatile crypto assets to the concept of the lender of last resort, a role traditionally reserved for more stable financial instruments. He expressed concern over the risks associated with speculative investments, particularly when those can rise or fall dramatically in a single day, emphasizing that such assets cannot be considered currencies.